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Well the PC market is dominated by western devs and the consoles for a long time by JP devs.

They have different design themes and goals, tho on the action RPG front I think they have made more advancement on the RPG front they have kinda died and are rotting right now. Its almost the same for the western RPGs. I mean I look at dragon age and can't help think how small and overly simple it is and that without the story by bioware it would have been ignored....

JRPGs don't dominate consoles anymore either. Their last bastion are handhelds right now.

I believe JRPGs are a dying breed, because they have not evolved with the times. Back in the 80s and 90s, JRPGs general design was the only way to have an involving experience. Hardware limitations meant that developers could not create very interesting combat mechanics and open worlds, so the gameplay was simply a skin deep turn based system resembling D&D, which had to be different from game to game even in the same series, because if it remained the same, people would find out eventually. In reality, it was just a brainless grind in order to pad the extremely linear storyline. Storylines were over the top saving the world plots, and that was all about those games.

After the mid 90s, technology allowed more complex mechanics and presentation, and while CRPGs exploited that to create interesting worlds and gameplay mechanics, JRPGs used it to create over the top presentation and flashy "summon sequences" instead of interesting gameplay,while making plots more and more absurd along the way and remaining linear.

Eventually we came to the current generation, with CRPGs becoming immersive complex worlds with nice gameplay mechanics, and JRPGs failing to compete. JRPGs have almost nothing to offer anymore. The only reason to play them, is for their visual style and only that. Even their storylines aren't that good anymore. If you like anime, chances are you will like them too. But if you just want a nice game with a nice world and a system of gameplay worth spending time with, CRPGs are the way.

The interesting thing about Demon's and Dark Souls is that they are western- style RPGs made in Japan.

To return to the subject of JRPGs and Western RPGs...

I'm slightly paraphrasing Extra Credits here, but whatever.
JRPGs focus on the narrative, while western RPGs focus on the fantasy itself. JRPGs mostly tell a story while it's western brethren let you live it.

The reason why JRPGs are not doing that well anymore is their failure to evolve; nowadays shooters, other style of RPGs and basically all games are capable of delivering a rich, interesting story. JRPGs have not added anything to their repertoire in a long time, and their stories are not so fantastic that other genres are not able to deliver them.